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In 2021, water companies, in partnership with others, have been invited to enter two types of competition with their innovations: A £2 million Innovation in Water Challenge (IWC) with the opportunity to receive funding of up to £250,000 and a £40 million Water Breakthrough Challenge (Breakthrough 1) with the opportunity to receive funding up to £10 million. The first round of the IWC opened on 18 January 2021, and Ofwat announced the winners of the challenge on 21 April 2021. Breakthrough 1 opened on 6 May 2021, and we announced the winners of the challenge on 30 September 2021. This document sets out the process we have followed for Breakthrough 1 and the reasons for our decisions.